Signet Jewelers Ltd (SIG)
Profitability ratios
Return on sales
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 39.23% | 38.98% | 40.01% | 33.54% | 36.37% |
| Operating profit margin | 8.63% | 7.73% | 11.57% | -1.12% | 2.59% |
| Pretax margin | 8.88% | 5.76% | 11.33% | -1.74% | 2.12% |
| Net profit margin | 11.25% | 4.81% | 9.86% | -0.29% | 1.73% |
Signet Jewelers Ltd has displayed a consistent improvement in profitability ratios over the past five years. The company's gross profit margin has remained relatively stable around the high 30% range, reflecting efficient cost management and favorable pricing strategies.
Signet's operating profit margin has shown a positive trend, with notable improvements from negative figures in 2021 to over 8.6% in 2024. This suggests the company has effectively controlled its operating expenses and increased operating efficiency.
The pretax margin has also demonstrated a consistent upward trajectory, from negative percentages in 2021 to nearly 9% in 2024. This indicates that Signet has managed its pre-tax income more effectively and has shown increased profitability before accounting for taxes.
Lastly, the net profit margin highlights the company's ability to generate profits after all expenses, including taxes. Signet's net profit margin has significantly improved over the years, reaching 11.25% in 2024. This indicates a strong performance in converting revenue into profit and a positive outlook for the company's financial health.
Overall, Signet Jewelers Ltd's profitability ratios reflect a positive trend, showing consistent growth and improved efficiency in managing costs and generating profits.
Return on investment
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.12% | 9.14% | 13.74% | -0.93% | 2.51% |
| Return on assets (ROA) | 11.89% | 5.69% | 11.71% | -0.25% | 1.67% |
| Return on total capital | 28.69% | 26.92% | 52.67% | -4.32% | 9.51% |
| Return on equity (ROE) | 37.41% | 23.86% | 49.23% | -1.28% | 8.63% |
Signet Jewelers Ltd's profitability ratios show a mixed performance over the past five years. The operating return on assets (Operating ROA) remained relatively stable around 9% in the last two years, indicating the company's ability to generate operating profits from its assets. The Return on Assets (ROA) improved significantly in 2024 to 11.89%, reflecting a better utilization of assets to generate profits compared to the previous year.
Return on total capital showed a strong performance in 2022, with a ratio of 52.67%, indicating high returns generated from the total capital invested in the business. However, this performance declined in the following years, dropping to -4.32% in 2021 before rebounding to 28.69% in 2024.
Return on equity (ROE) also showed fluctuations, with a particularly high performance in 2024 at 37.41%. This indicates that shareholders' equity was efficiently utilized to generate profits in that year. In contrast, 2021 saw a negative ROE of -1.28%, reflecting a loss on shareholder's equity investment.
In summary, while Signet Jewelers Ltd has shown variability in its profitability ratios over the past five years, the recent improvements in ROA, Operating ROA, Return on total capital, and Return on equity suggest positive momentum in the company's profitability. However, it is important to monitor these ratios consistently to assess the company's ongoing financial health and performance.